The objectives of the proposed research are twofold: first, to investigate the effects of various legal restrictions on alcohol consumption using state crosssectional data for 1982 and some heretofore unused data on liquor, wine, and beer prices; and, second, to collect the necessary data for 1981-83 so that the research can be extended to more fully incorporate the role of prices and taxes as determinants of alcohol consumption. In a variety of ways, state governments have established alcohol control policies that attempt to modify the outcome generated by a free market in alcoholic beverages. The motives behind such policies are mixed, but in a number of instances the chief concern is with amelioration of the adverse health effects of alcohol consumption and abuse. The analysis of the effectiveness of such policies is a natural topic for economic analysis, since a chief concern of economics is with the effects of exogenous constraints on consumption of various commodities and services. The first task of the proposed research will be to estimate separate demand functions for liquor, wine, and beer which incorporate the usual economic variables as well as a variety of legal restraints. The transaction prices of beverages will be obtained from the American Chamber of Commerce Researchers Association. Modelling of legal restraints will involve both continuous and binary variables, with attention initially restricted to those restraints thought to constrain the availability of alcohol. The second task will be to collect additional data necessary for estimation of a three-equation model including alcoholic beverage demand, price, and excise tax rates. This model will eventually permit the examination of a wider variety of policy variables on alcohol consumption choices. The research, methodology will involve regression analysis, both ordinary leastsquares and two-stage least-squares. Data will be drawn from various secondary sources covering consumption, prices, legal restrictions, taxes, income, tourism, religion, climate, cost-of-living, etc.